When will Israel realise that it cannot ride roughshod over the Palestinians for ever?

Ever since they declared a state of Israel in 1948 they have been acting like Nazi storm troopers strutting around persecuting the Palestinians year after year. Even they must realise that this cannot go on forever especially now as they are losing world support. Is it now not the time to extend the hand of friendship, lift the blockade of Gaza, remove the hundreds of road blocks and even start to remove the segregation walls and allow the next flotilla to proceed to its destination .Palestinians want peace just as much as Israel. If Israel tried this policy it would once again regain the respect of the world . What does it have to lose when the alternative has clearly failed